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Overseas Chinese Town (Asia) Holdings (HKSE:03366) Gross Margin % : 7.30% (As of Dec. 2023)


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What is Overseas Chinese Town (Asia) Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Overseas Chinese Town (Asia) Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$85 Mil. Overseas Chinese Town (Asia) Holdings's Revenue for the six months ended in Dec. 2023 was HK$1,169 Mil. Therefore, Overseas Chinese Town (Asia) Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 7.30%.

Warning Sign:

Overseas Chinese Town (Asia) Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -24.3%.


The historical rank and industry rank for Overseas Chinese Town (Asia) Holdings's Gross Margin % or its related term are showing as below:

HKSE:03366' s Gross Margin % Range Over the Past 10 Years
Min: 10.49   Med: 31.06   Max: 37.66
Current: 11.02


During the past 13 years, the highest Gross Margin % of Overseas Chinese Town (Asia) Holdings was 37.66%. The lowest was 10.49%. And the median was 31.06%.

HKSE:03366's Gross Margin % is ranked worse than
88.9% of 1658 companies
in the Real Estate industry
Industry Median: 36.66 vs HKSE:03366: 11.02

Overseas Chinese Town (Asia) Holdings had a gross margin of 7.30% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Overseas Chinese Town (Asia) Holdings was -24.30% per year.


Overseas Chinese Town (Asia) Holdings Gross Margin % Historical Data

The historical data trend for Overseas Chinese Town (Asia) Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Overseas Chinese Town (Asia) Holdings Gross Margin % Chart

Overseas Chinese Town (Asia) Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.96 24.22 20.63 10.49 11.02

Overseas Chinese Town (Asia) Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.16 -1.19 15.16 31.58 7.30

Competitive Comparison of Overseas Chinese Town (Asia) Holdings's Gross Margin %

For the Real Estate - Development subindustry, Overseas Chinese Town (Asia) Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Overseas Chinese Town (Asia) Holdings's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Overseas Chinese Town (Asia) Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Overseas Chinese Town (Asia) Holdings's Gross Margin % falls into.



Overseas Chinese Town (Asia) Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Overseas Chinese Town (Asia) Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=152.2 / 1381.173
=(Revenue - Cost of Goods Sold) / Revenue
=(1381.173 - 1228.956) / 1381.173
=11.02 %

Overseas Chinese Town (Asia) Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=85.3 / 1169.394
=(Revenue - Cost of Goods Sold) / Revenue
=(1169.394 - 1084.065) / 1169.394
=7.30 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Overseas Chinese Town (Asia) Holdings  (HKSE:03366) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Overseas Chinese Town (Asia) Holdings had a gross margin of 7.30% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Overseas Chinese Town (Asia) Holdings Gross Margin % Related Terms

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Overseas Chinese Town (Asia) Holdings (HKSE:03366) Business Description

Traded in Other Exchanges
N/A
Address
1 Garden Road, 59th Floor, Bank of China Tower, Hong Kong, HKG
Overseas Chinese Town (Asia) Holdings Ltd is an investment holding company. It operates its business through three segments. The Comprehensive Development Business segment which drives the majority of revenue is engaged in the development and operation of the tourism theme park, the development, and sales of residential properties, and the development and management of properties; Equity investment and fund business segment engage in the investment in new urbanization industrial ecospheres, such as domestic and overseas direct investments, industrial funds, and education. The Finance lease business segment engages in the finance lease business. It generates the majority of its revenue from Mainland China.
Executives
Pacific Climax Limited 2101 Beneficial owner
Shen Zhen Hua Qiao Cheng Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Hua Qiao Cheng Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Xiang Gang Hua Qiao Cheng You Xian Gong Si 2201 Interest of corporation controlled by you

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